The Competitive Price-Taker Model Is Usually Used to Illustrate the Competitive

question 94

Essay

The competitive price-taker model is usually used to illustrate the competitive process. If firms cannot choose their price, where is the competition?

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first alone.

Reinforcement

In behavioral psychology, a process in which a behavior is strengthened by the outcome that follows, whether it's positive (reward) or negative (removal of an undesirable stimulus).

Punishment

A consequence that decreases the likelihood of a behavior being repeated.

Increase

A rise or growth in quantity, size, strength, or another measurable factor.